Genco to acquire ATC Technologies
The deal is expected to close during the fourth quarter of 2010.
in the NewsState of Logistics 2016: Pursue mutual benefit Shippers encourage East Coast dockside labor to work with management…before it’s too late Signs of economic improvements are evident but there is a way to go FTR Shippers Conditions Index notes rate and supply trouble may be coming in 2017 Cranes going higher at Port of Oakland’s largest marine terminal More News
ATC Corporation, a provider of logistics and remanufacturing services for the high-tech and automotive industries, said it has entered into a definitive agreement and plan of merger pursuant to be acquired by third-party logistics (3PL) services provider Genco Supply Chain Solutions, for $512.6 million.
Genco is a privately-owned, 6,800-employee company with more than 130 operations throughout the U.S. and Canada. It has been led by chairman and CEO Herb Shear since 1971 and provides various services, including: contract logistics, reverse logistics, product liquidation, pharmaceutical logistics, and government solutions for more than 150 customers, including manufacturers, retailers, and U.S. government agencies.
During a conference call with financial analysts, ATC president and CEO Todd Peters said this merger will provide ATC’s current customers with a broader set of solutions and the same level of operational expertise for which ATC has become known.
“We feel this agreement is a great opportunity for us, our customers, our employees, and our stockholders,” he said. “And in addition, this merger provides an opportunity for all our people to join a top-notch logistics company. [This] is a tribute to our employees’ hard work and dedication that Genco sees ATC as an attractive potential acquisition.”
ATC officials said this deal is subject to approval by holders of a majority of ATC’s outstanding common stock, receipt by Genco of the proceedings of the debt and equity financing. The transaction is expected to close during the fourth quarter of 2010.
ATC added that under the terms of this transaction ATC and its advisors are permitted and intend to actively solicit alternative acquisition proposals from third parties until August 17. Genco has the right to match any offer ATC receives and is entitled to a breakup fee of $15 million if ATC were to accept and approve a superior proposal during the soliciting period and after the soliciting period Genco could receive $20 million if an unsolicited period is received and approved.
About the AuthorJeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
Subscribe to Modern Materials Handling Magazine!Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!
Automated Storage on the Move Receiving 101: Setting the Table for Success View More From this Issue